Foundation Spared in Clawback Suit

The liquidator for Bernard Madoff’s defunct business said the family of deceased New York real estate magnate Norman F. Levy agreed to pay $220 million to settle claims over its profit from the fraud.

… The Levys and their entities, including a charitable foundation, withdrew a total of $305 million more from Madoff’s firm than they deposited during the six years before Madoff’s December 2008 arrest, Picard said.

… According to the court filing, Picard isn’t seeking the return of $84 million in withdrawals from Madoff’s firm by the Betty & Norman F. Levy Foundation, because the money was donated to charity. The foundation is winding down, Picard said.

“Given the inability to pay any judgment against it, the trustee has determined not to pursue recovery in respect of amounts withdrawn by the foundation,” Picard said in the filing.

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